Correlation Between Keysight Technologies and FAST RETAIL
Can any of the company-specific risk be diversified away by investing in both Keysight Technologies and FAST RETAIL at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Keysight Technologies and FAST RETAIL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Keysight Technologies and FAST RETAIL ADR, you can compare the effects of market volatilities on Keysight Technologies and FAST RETAIL and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Keysight Technologies with a short position of FAST RETAIL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keysight Technologies and FAST RETAIL.
Diversification Opportunities for Keysight Technologies and FAST RETAIL
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Keysight and FAST is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Keysight Technologies and FAST RETAIL ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FAST RETAIL ADR and Keysight Technologies is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Keysight Technologies are associated (or correlated) with FAST RETAIL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FAST RETAIL ADR has no effect on the direction of Keysight Technologies i.e., Keysight Technologies and FAST RETAIL go up and down completely randomly.
Pair Corralation between Keysight Technologies and FAST RETAIL
Assuming the 90 days horizon Keysight Technologies is expected to generate 1.26 times more return on investment than FAST RETAIL. However, Keysight Technologies is 1.26 times more volatile than FAST RETAIL ADR. It trades about 0.26 of its potential returns per unit of risk. FAST RETAIL ADR is currently generating about 0.16 per unit of risk. If you would invest 14,148 in Keysight Technologies on September 5, 2024 and sell it today you would earn a total of 2,132 from holding Keysight Technologies or generate 15.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Keysight Technologies vs. FAST RETAIL ADR
Performance |
| Timeline |
| Keysight Technologies |
| FAST RETAIL ADR |
Keysight Technologies and FAST RETAIL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keysight Technologies and FAST RETAIL
The main advantage of trading using opposite Keysight Technologies and FAST RETAIL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keysight Technologies position performs unexpectedly, FAST RETAIL can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in FAST RETAIL will offset losses from the drop in FAST RETAIL's long position.| Keysight Technologies vs. FAST RETAIL ADR | Keysight Technologies vs. WIZZ AIR HLDGUNSPADR4 | Keysight Technologies vs. Altair Engineering | Keysight Technologies vs. Norwegian Air Shuttle |
| FAST RETAIL vs. CARSALESCOM | FAST RETAIL vs. Meiko Electronics Co | FAST RETAIL vs. ARROW ELECTRONICS | FAST RETAIL vs. UMC Electronics Co |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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